The IRS is Shriveling into Nothing… But Not Quite Yet

Here’s the Deal:

It’s being reported that the IRS is planning to pare itself down to half its size by the end of 2025.

Some people are probably pumped.

And if you like to live dangerously, I guess I get it.

But here’s the reality—the IRS is cutting people, not tax debt.

And tax debt doesn't care about staffing levels.

What Does This Mean for Your Clients?

Fewer IRS employees means even more headaches for taxpayers when it comes to getting their issues resolved.

If you’ve got clients with unresolved tax debt, they should act now.

➲ Let’s break this down:

1. Less IRS Employees Means Longer Wait Times for Tax Debt Resolutions

You’ve seen your clients in this position before.

Waiting for a resolution on their tax debt.

It’s annoying, and it seems like it takes forever.

Well, that waiting is going to take forever and a half soon because half the staff at the IRS will be available to tax issues.

Payment plans, offers in compromise, lien releases—all of it is about to take a lot longer.

Being in tax debt with no resolution makes people anxious as hell.

So don’t let your clients wait around unless you want to hear from them every day for the next year.

The time to act is now.

2. Penalties Keep Adding Up—Whether the IRS is Big or Small

Automated penalties don’t care if the IRS has nobody working.

If your clients file late or can't pay, penalties will accrue.

It would be nice to think that the IRS would give taxpayers a break if they’re going to be understaffed, but that’s not happening.

What does this mean for your clients?

They can expect penalties to pile up while they wait for the IRS to get around to them.

The longer the resolutions take, the more it’ll cost your client.

3. Referrals to Tax Debt Experts Will Be Key to Moving Forward

The longer your clients wait to resolve their tax issues, the harder it will be for them to get the deals, the loans, and the peace of mind they need.

Now’s the time to help them get the assistance they need from someone who knows how to navigate these issues (me).

So if you’re an accounting professional and you have clients who have tax debt and rely on you for advice, send them my way, and I’ll resolve their tax debt before all hell breaks loose.

TL;DR:

⏩ IRS downsizing means slower resolutions for tax debt.

⏩ Penalties will keep racking up while your clients wait.

⏩ Acting now could save your clients anguish and money.

The Bottom Line

Waiting for the IRS to shrink even further isn’t a winning strategy for your clients.

They need to address their tax issues now, before it becomes even harder to resolve.

Reach out to me if your clients have tax issues.

I’m happy to talk it through with you.